California Enacts Major Legal Changes for 2026

California has enacted new laws to increase transparency and consumer protections in car buying, including a three-day return policy for used cars under $50,000, mandatory disclosure of actual prices and financing costs, and restrictions on add-on charges. The state also allows automakers to opt out of certain lemon law protections, and efforts to increase dealer fees were vetoed by Gov. Newsom. These changes aim to make car purchases more transparent and fair, amid ongoing legislative and industry debates.